How much is the percentage tax

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A stockholder or a closely held corporation owns 100,000 shares before the IPO. The cost of the share is P1,000,000. During the IPO, the shares are selling at P12 per share. His broker friend advises him not to sell his shares during the IPO but instead wait until after the IPO. After the IPO, the outstanding shares of the closely held corporation are 1,000,000 hares and are now selling at P14 per share at the local stock exchange.

The stockholder of the closely held corporation approaches you to seek your advice because he is also planning to sell the shares directly to his friend and, therefore, not traded through the local stock exchange at P15 per share.

Problem 1: How much is the percentage tax if he sells his shares during the CPO on January 2, 2018?

A. P12,000

B. P36,000

C. P48,000

D. P0

Reference no: EM132675051

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